Keeping in line with CEO Alan Mulally’s predicted market upswing, Ford has announced it will be boosting production in the third quarter. Ford, the only of the Detroit Big Three not to receive a government handout, plans to increase production in Q3 by about 10 percent.
The decision to boost production during the second half of the year could give Ford a leg up on its competition. Cross-town rivals General Motors and Chrysler have already announced that many of their plants will be shuttered during the latter half of the year, giving Ford an opportunity to increase its market share.
“This is a once-in-a-lifetime opportunity to separate us from our other domestic competitors,” an unnamed Ford source told The Wall Street Journal. “You have to deliver the product people want to buy. That said, you have to take this historic opportunity to grab market share.”
Ford’s U.S. market share has been up six of the last seven months.
Ford plans to produce 150,000 cars and 310,000 trucks in the third quarter. During the third quarter of 2008, Ford built 184,000 cars and 234,000 trucks – a difference of 42,000 units.
However, it remains possible that Ford’s decision to ramp up production could backfire. Gas prices have been on the rise as of late, which could hinder truck sales. If consumer continue to stay away from larger vehicles, Ford could be left with a mountain of unsold inventory – leaving the Blue Oval no better off than Chrysler of GM.
